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FAS - Free Alongside Ship

Jul 5, 2021

Person standing next cubes spelling FAS for the Incoterm FAS when shipping with Shipa Freight.

What is the FAS Incoterm (Free Alongside Ship)

Exclusive for ocean freight shipping, the FAS Incoterm requires the seller to deliver the goods alongside the ship. The seller also bears all risks of loss of or damage to the goods until they have been placed at the port dock. Only then is the risk transferred to the buyer.

While previously, as set forth by the Incoterms 2000 edition, the buyer was responsible for customs clearance requirements, FAS now transfers that responsibility to the seller. However, it is still the buyer who arranges and pays for the cost of shipping.

Obtaining insurance is not a requirement under the FAS INcoterm. However, it is highly recommended to insure the goods.

Shipping containers to be shipped being loaded

The Seller’s Obligations Under the FAS Incoterm

  • Placing the goods alongside the vessel for delivery
  • Transport-related security
  • Checking, packaging, marking
  • Notify the buyer that the goods have been delivered
  • Bear all risks until the goods have been delivered
  • Customs handling fees
  • Export clearance
  • No obligation to make a contract of carriage
  • No obligation to obtain insurance

The Buyer’s Obligations Under the FAS Incoterm

  • Pay for the price of the goods
  • Bear all risks from the time they have been alongside the vessel
  • Contract of carriage
  • Provide the seller with notice, including information about transport security requirements, vessel name, loading point, and selected delivery date
  • Origin charges
  • Customs handling fees at destination
  • Transport and import clearance
  • Duties and taxes
  • No obligation to obtain insurance

What Does the Seller Pay for Under the FAS Incoterm?

  • All costs related to the goods until delivery
  • Costs of providing usual proof
  • Duties and taxes

What Does the Buyer Pay for Under the FAS Incoterm?

  • Costs related to the goods from the time of delivery
  • Duties and taxes
  • Shipping
  • Additional costs incurred for failure to give the seller notice and if the vessel fails to arrive on time, fails to take the goods, or closes the cargo earlier than the notified time.

Is the FAS Incoterm Suitable for Containerized Cargo?

Because the FAS Incoterm requires the seller to place the goods alongside the ship at the dock, it’s not suitable for containerized cargo that is directed to the container terminal first. It’s important that the goods can be placed directly next to shipping vessels for the seller to abide by the requirements of the FAS Incoterm.

If you are shipping containerized cargo, it’s recommended that you use the FCA Incoterm instead. Speak to our team of experts to find out which Incoterm applies to your shipment best.